Liyun Owns a Small Flower Shop and the Industry Is

Multiple Choice

Liyun owns a small flower shop and the industry is perfectly competitive.She is considering whether or not to hire an additional worker.The wage rate for the worker is $500 per week; the marginal product of the additional worker would be 100 units per week; and the price of the units produced is $10 per unit.What should Liyun do?

A) hire the additional worker
B) not hire the additional worker
C) raise the price of the flower arrangements that she sells
D) Not enough information is given to answer the question.